Sphere 3D Corp reported QQ1 2025 revenue of $2.82 million, a 59.4% year-over-year decline and a 6.7% sequential increase. The quarter delivered a gross profit of $0.623 million on a gross margin of 22.1%, but operating expenses dominated the cost structure, resulting in an EBITDA loss of $2.55 million and a net loss of $8.78 million (EPS -$0.32). The company generated negative operating cash flow of $4.08 million and free cash flow of $5.10 million, with cash at period-end of $2.79 million and no long-term debt. Cumulative retained earnings stand deeply negative at $-465.61 million, while total stockholders’ equity remains positive at $30.72 million driven by non-cash equity components and historical capital contributions. The results underscore a high fixed-cost base and an ongoing transition toward data-management and hybrid-cloud solutions, while sustaining a bitcoin mining footprint. Absent additional guidance, the near-term outlook hinges on the ability to stabilize revenue, optimize operating costs, and monetize the company’s software and professional services portfolio.
Key Performance Indicators
Revenue
Decreasing
2.82M
QoQ: 6.66% | YoY: -59.44%
Gross Profit
Decreasing
623.00K
22.12% margin
QoQ: 139.62% | YoY: -76.39%
Operating Income
Decreasing
-5.19M
QoQ: 40.24% | YoY: -178.03%
Net Income
Decreasing
-8.79M
QoQ: -21.66% | YoY: -96.23%
EPS
Decreasing
-0.32
QoQ: 11.11% | YoY: -18.52%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $2.817 million in QQ1 2025; YoY: -59.44%, QoQ: +6.66%. Gross Profit: $0.623 million; Gross Margin: 22.12%; YoY Gross Profit: -76.39%, QoQ: +139.62%.
Operating Income: -$5.189 million; Operating Margin: -1.84%; YoY: -178.03%, QoQ: +40.24%.
EBITDA: -$2.545 million; EBITDA Margin: -0.90%.
Net Income: -$8.785 million; Net Margin: -3.12%; YoY: -96.23%, QoQ: -21.66%.
EPS (Diluted): -$0.32; YoY: -18.52%, QoQ: +11.11%.
Cash Flow: Net Cash from Operating Activities: -$4.078 million; Capital Expenditures: -$1.026 million; Free Cash Flow: -$5.103 million.
Liquidity: Cash and Cash Equivalents: $2.788 million; Short-Term Investments: $5.753 million; Total Cash & Short-Term Investments: $8.540 million. Net change in cash: -$2.638 million; Cash at Beginning: $5.425 million; Cash at End: $2.788 million. Net Debt: -$2.788 million (net cash).
Balance Sheet: Total Assets: $34.275 million; Total Liabilities: $3.551 million; Total Stockholders’ Equity: $30.724 million; Retained Earnings: -$465.606 million; No long-term debt reported; PPE Net: $20.990 million; Intangibles: $2.724 million.
Key Ratios: Current Ratio 2.74; Gross Margin 22.1%; Operating Margin -1.84%; Net Margin -3.12%; ROA -0.256%; ROE -0.286%; ROCE -0.169%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.82M
-59.44%
6.66%
Gross Profit
623.00K
-76.39%
139.62%
Operating Income
-5.19M
-178.03%
40.24%
Net Income
-8.79M
-96.23%
-21.66%
EPS
-0.32
-18.52%
11.11%
Key Financial Ratios
Gross Profit Margin
Fair
22.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-1.84%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-3.12%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.26%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.29%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
2.74
Current ratio indicates excellent liquidity and financial flexibility
P/E Ratio
Negative
0.00x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.00x
Trading below book value, potential value opportunity or distressed
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